CPKC(US:CP) Zacks Investment Research·2024-02-02 12:05Core Insights - Canadian Pacific Kansas City Limited (CP) reported fourth-quarter 2023 earnings per share of 87 cents (C$1.10), exceeding the Zacks Consensus Estimate of 83 cents, with a year-over-year increase of 7.4% [1] - Quarterly revenues reached $2.773 billion (C$3.776 billion), surpassing the Zacks Consensus Estimate of $2.712 billion and showing a significant year-over-year improvement of 53% [1] - Freight revenues, which accounted for 97.9% of total revenues, increased by 53.2% year-over-year, with notable growth in various segments such as Automotive (up 147%) and Coal (up 115%) [1] Financial Performance - Total Freight revenues per revenue ton-miles increased by 9% year-over-year, while total Freight revenues per carload declined by 6% [2] - Operating income rose by 46%, but total operating expenses increased by 58% year-over-year, leading to an improved operating ratio of 61.8%, up 200 basis points from the previous year [2] - Cash and cash equivalents at the end of the fourth quarter were C$0.464 billion, up from C$0.451 billion in the same quarter of 2022, while long-term debt rose to C$19.35 billion from C$18.141 billion [2] Future Outlook - Management anticipates adjusted earnings for 2024 to grow in double digits from 2023, projecting earnings of $3.84 per share, compared to a lower Zacks Consensus Estimate of $3.27 per share [2] - Capital expenditures for 2024 are expected to be $2.75 billion [2] Industry Comparison - J.B. Hunt Transport Services, Inc. reported fourth-quarter 2023 earnings of $1.47 per share, missing the Zacks Consensus Estimate and declining 23.4% year-over-year, with total operating revenues of $3.303 billion, which fell 9.5% year-over-year [4] - Delta Air Lines reported fourth-quarter 2023 earnings of $1.28 per share, exceeding the Zacks Consensus Estimate, but showing a year-over-year decline of 13.51% due to high labor costs, while revenues increased by 5.87% year-over-year to $14.223 billion [4]